dagen: a referendum on taxing the rich. connell: one week later we are already asking how history will adjust the election. ken burns is with us today. dagenn the footrace investigation. he said 30,000 e-mails to that tampa woman who triggered the fbi probe. connell: the president kicks off his fiscal cliff meetings with labor leaders. those readings are happening in this very hour. let's talk about stocks now as we do every 15 minutes. nicole petallides starts us off from the floor of the new york stock exchange. nicole: market picking up some steam. first i want to take a look at a mover and that is a k steel.

they have come out with their numbers. the prices will likely decline. the steel company is under some pressure today. it is down over 8%. you can see here, right now, it is under some pressure. i want to take a look at the broader markets. the dow jones industrials at 12,884. still not at 13,000. we have lost some key levels that everyone was looking four. at the same time, we just got a pop here in the last half hour. do not forget, you have seen selling three weeks in a row. the 26th of october, almost a 2% loss. back to you. connell: thank you. dagen: the bush tax cuts expected to expire a month from

now. connell: neil cavuto is the senior vice president managing editor of fox business. he starts us off today on markets now. >> i know one way or the other, if you are in that helen your rates will go up, your deductions are limited. you will pay a lot in taxes. you add it up along with the 3.8% medicare sure tax on wealthier taxes in excess of 250,000 profit or stock. you could see that top rate surge ten points. we are closing in on france. it is way too early. they can negotiate the details all they want. it is inevitable they are going.

the question is, how much quarterback? it is inevitable. dagen: with the spending the way it is in d.c., neil, will it be held to just that amount of money could affect you have almost half the country who pays no federal income tax. neil: i have always so people right or left, with this argument, i am not here to resurrect the old romney 47% think. why should i add to it. how n the heck did it get to 47% not paying any federal income tax? [talking over each other] a big part of it was ronald reagan's in the reform act of 1886 that, you know, increased reductions and what have you. when i got out of school,

probably before both of you were born, it was in the middle 20s. and the direction we are going, guys, it will be in the mid- 50s. in the argument of so-called fairness, we are telling, you know, the top few% that pay 43% of all taxes, it is only fair you pay more. i hope it will be a very welcome outcome. connell: largely, i am sure, it is 2% versus 98% when you pull it. it is very popular, the idea of raising taxes on the rich. they favor extending the bush

tax cuts except for the wealthy. neil: you assume that the rich guy pay for it. what i would not do at that table, i would not -- about the appetizer. then, what happens is we penalize those who provide -- believe me, i am not one of these, by the way, nothing wrong with that. i just think it is a disjointed argument. one thing romney did get right, although he maybe did not articulate as well as he should have, it is about everyone having a stake in the action. everyone has something so that they can say i am in this game. i have a right to protest the rules and obligations of this

game. without that, it gets increasingly lopsided. connell: thank you, neil, as always. [talking over each other] with all of this news of under the table, we do not need any of that. 8:00 o'clock tonight, cavuto on the fox business network. [talking over each other] dagen: i just want to point out, speaking of under the table, here is my hand. [ laughter ] connell: great transition. dagen: exactly. thank you, neil. david petraeus investigation has now included e-mails from general john allen. the man who took over for david petraeus back in july 2011. allen is said to have engaged in inappropriate communication with

the very tampa woman who received threatening e-mails from petraeus' former lover that triggered the fbi investigation. you cannot make it up, can you? john bolton joins us now from houston. what are they doing? i want to ask the obvious. >> that is beyond me. i really cannot understand what is happening. it is interesting that a number of generals are getting thrown under the bus. it is not like it is something serious like community organizers. dagen: in terms of, what is the most critical thing out of this scandal? the fact that the focus is now off of benghazi? we can go through the timeline of who knew what and when in the administration and various forms of government, but is it the fact that our focus has completely shifted away from

what happened in libya? >> well, yes, but i think the two are related. the most important fact here that has been resorted to by "wall street journal" and fox is that attorney general eric holder knew of the petraeus situation in the late summer. it is inconceivable to me, and i speak as an alumnus of the department, inconceivable to me, that if one of them had heard about a comparable circumstance that he would not have talked to the president almost immediately. what did holder do for two months with this information? did he just sit on it because he did not want it to explode politically, did he not talk to the president, did you not talk to the white house chief of staff. very hard to believe that he did not. this is where, i think, benghazi factors in.

it is the petraeus of their color if it would have blown up in september or october, i think the benghazi incident would have been seen in a different way. dagen: do you think that petraeus still testifies? >> definitely. not even a close question. maybe not this week because of his personal circumstances, but inevitably. dagen: how does it shake our will it very? what does it say about the personal behavior of our top commanders in this country? >> i think that we are a little bit on the verge of a double standard here. we have had presidents who have done worse and they have remained in office. it is hard now, we will not have a sensible, rational discussion about how petraeus was treated or how general allen will be treated, but, you know, affairs occur in the cia.

the issue is whether a impact. dagen: it was great to see you, former ambassador and fox news contributor john bolton. 20,000 pages of documents, mostly e-mails. man, oh, man, he was busy. connell: all the players and the debt negotiations are still the same. how should investors bet on the outcome? we will talk with chris aarons from ubs coming up. dagen: how will history view this presidential election? kevin burns brings us his report card. he will also talk to us about his new film. we will produce more oil as a nation and saudia arabia in

about eight years. in doing nothing to the price. ♪

♪ dagen: let's make some money with charles payne this hour. is it another dirty finger nail

stock? charles: they were taking over 40% premium. i looked into this. there is a name i like called carpenter technology. it has been around for a while. they just made an acquisition so they have the same access. their biggest market is aerospace, same as titanium. they are metal is all over the plane. i like it for that reason. i like it for valuation. the ceo this month was named the most profitable ceo out of 100,000 ceos around the world. i think it is just one of these undervalued names that you start to look at this space. aerospace energy, long-term play, i think this is a one for 401(k)s. connell: charles, see you next

hour, i believe. nicole is that watching retailers for us. nicole: we will take a look at a few retailers. we will start with saks fifth avenue. they are coming out with numbers that are a little bit disappointing. profit was on the rise. the big picture is they noted a fiscal cliff playing into their numbers as well. and hurricane sandy. it really generates about one fifth of their revenues. that is a big, big player. a lot of stores had to close for at least one day and some for over a week. then there is michael kors. higher same-store sales. they expect more profits. year to date, michael kors is a seller. it is. dow jones industrials up 68

points. dagen: business leaders cringing. where do you claim. we will talk about some ideas. connell: grading the election versus those in our nation's past. we have the report card coming up for you after that. first, let's take a look at the world currencies. the local ♪ having you ship my gifts couldn't be easier.

well, having a ton of lations doesn't hurt. and my daughter loves the santa. oh, ah sir. that is a customer. let's not tell mom. [ male announcer ] break from the holiday stress. fedex office.

so, which supeast 4g lte service would yochoose, based on this chart ? don't rush into it, i'not looking for the fastest answer. obviouslverizon. okay, i ve a different chart. going that way, does that make a difference ? look averizon. it's so muchore than the other ones. so what if we just changed the format altogether ?

isn't that the exact same thing ? it's pretty clear. still sticking with verizon. verizon. more 4lte coverage than all other networks combined.

♪ >> at 20 minutes past the hour, i have your fox news minute. surrounding cia director david petraeus, john allen under investigation for allegedly sending inappropriate e-mails to the scandals whistleblower. allen denies wrongdoing. leon panetta encouraging the senate to act quickly in approving his successor. john kerry could be nominated secretary of defense. president obama may tap the

vietnam vet to replace leon panetta, if he departs. this time he remains focused on his job in the senate. adolf hitler once called home, what to do with this home. suggesting it be made into a residence. the building is privately owned and being rented by the town's government. those are your headlines. time to get back to connell. connell: thank you for that. the president obama scheduled to get the first of many meetings started right now. you have the same cast of characters to go shooting the same issues. chris eyre -- joins us now. when you try to bet on it as market participants are trying to do, this time, what side do you take? >> well, good question.

i think this time we go into the negotiations ii the president has, you know, a slightly different situation than he had before. he is reelected now so he does not have to face voters again in a year a half or so. also, the republicans are in a situation where they will be faced with tax increases at the end of the year. the expiration of all these tax cuts will go away. that will shift the leverage in the favor of the president a little bit. connell: how does that affect the markets and what you do? it may very well be that a higher tax environment is the reality in the future is just a matter of what is the order of magnitude, is it rates versus limiting deductions and things like that. whatever you call it, higher deductions are coming.

taxes on dividends, capital gains and a look at where the s&p was trading, up 15% or so. people will start to vacate the equity markets and take profits this year while the taxes are lower. it has caused some technical damage. the negative move in equity has driven bonds higher in price. we are kind of responsive to them, in that regard, but we are also responsive to the fact that businesses are finding it very hard to mike forward plans. connell: you also procure up into the mix, the dynamic that is been there for a long time with so we are the best of the worst where the money comes to

the united states because other parts of the world is struggling >> absolutely. the aid package did not get passed through. it was supposed to go through the end of the month. they have to issue some bills today. we still have until the end of the month with greece. connell: this so-called day of reckoning, where the bond market takes control and says get your act together, we better do something about these fiscal issues or we will be in some real trouble. it seems as if you are saying that will not happen anytime soon. >> i think that happens further out in time. i do think that it is the realistic problem for policymakers. i think right now we are faced with the u.s. possibly being downgraded by moody's. it is when you go from a aa one category, you start tracking

down which maybe two or three years out. connell: thank you very much for putting that together for us. chris ahrens. dagen: meeting with labor as we speak. connell: just a week after microsoft unleashed windows eight on us, the tech giant releases the guy who is behind it. what is going on there. we will also talk with ken burns. he will talk about his election and his new documentary about the dust bowl. here are some winners on the s&p 500 today. ♪

>> announcer: you never know when, but thieves can steal your identity and turn your life upside down. >> hi. >> hi. you know, i can save y 15% today if you open up a charge card account with us. >> youust read my mind. >> announcer: just one little piece of iormation and they can open bogus accounts, stealing your credit, your money and ruininyour reputation. that's why you need lifelock to relentlessly protec what matters most... [beeping...] helping stop crooks before your ideity is attacked. and now you can have the most comprehensive identity theft protection available today... lifelock ultimate. so for protection you just can't get anywhere else, get lifelock ultimate. >> i didn't know how serious identity theft was until i lost my credit and eventuly i lost my home. >> announcer: credit monitoring

is not enough, because it tells you after the fact, sometimes as much as 30 days later. with lifelock, as soon as our network spots a threat to your identity, you'll get a proactive risk alert, protecting you before you become a viim. >> identity theft was a huge, huge problemor me and it's gone away becae of lifelock. >> announcer: while no one can stop all identity theft, if criminals do steal your information, lifelock will help fix it, with our $1 million service guarantee. don't wait until you become the next vicm. you have so much to protect and nothing to lose when you call lifelock now to get two full months of identity theft protection risk free. that's right, 60 days risk-free. if you're not completely satisfied, notify lifelock and you won't pay a cent. der now and also get this shredder to keep yr documents out of the wrong hands-- a $29 doar value, free. get protected now. call the number on your screen or go to lifelock.com to try lifelock protection risk free

for a full 60 days. use promo code: gethelp. plus get this document shredder free-- but only if you act right now. call the number on your screen now! dagen: the president's plan to tackle the debt issue before the automatic spending cuts and tax hikes. he is meeting with laborers now and ceos. famed film maker ken burns, his newest work "the dust bowl" is this sunday. the bottom of the hour, stocks now and every 15 minutes. nicole is watching xerox. nicole: it is looking pretty good here today. we are seeing and of error.

they are up 2%. they expect two thirds of their revenue to come from services in the year 2013. that is something that has been suffering to a certain extent. by 2013 they expect two thirds of their revenue to come from services. a couple of other things when you talk about xerox dividends. they are being raised $0.35. they have also improved a $1 billion increase to its current stock buyback plan. the markets have been holding strong. the s&p 500 up a half percent. connell: let's get to president obama's fiscal cliff meetings right now. it is just getting underway with the labor leaders. tomorrow it turns to the business community. we are joined now by

mr. mccreary. congressman, first of all, thank you for coming on. this group has been getting a lot of attention. you have all of these business leaders. you want to do what, what effect do you think you have on these negotiations? >> to create an atmosphere that allows members of congress, policymakers, to make the tough decisions that have to be made to get our debt under control. i was in congress back in 95 and 96 when we did welfare reform and 97 when we made pretty deep cuts to medicare. those are pretty different votes to get. to have the back of the policymakers from a political standpoint so they can make the tough votes. connell: to give them cover, essentially. let's all jump while we hold

him. >> making sure the public understands the importance of members of congress making these tough votes. even if they may disagree on the particulars here and there, overall, the public has to understand that these votes have to be made good we have to solve the problem or our economy will be in the tank in the not too distant future. connell: you said they still have a couple years, maybe two years, before the market really get that is, the bond market, and the interest rates start to shoot up. before we see that, will we see the necessary action was not if you still have low rates, it is not necessarily force the low

hand. >> that is right. i think if we get to the point where the market starts to take action to discipline our habit, it is too late for policymakers. that is why we have to do this soon. we cannot wait until the market is tired of this and start imposing higher interest rates which will lead to the devaluing of the dollar and lower standards of living. we will probably make it okay, but do we want to leave it for the people who follow us? i do not think so. connell: the second part i wanted to ask you about was revenue and the republican mindset on this. looking at comments the last few days, it seems as if people are more inclined to say, whatever you call it, rates were closing the loopholes, we will have

higher taxes. >> i think it is fair to say if we have a solution to these big problems that are facing the country, it will take compromise. it will have to be a bipartisan solution. anything permanent done in congress has to be done on a bipartisan basis. to get there, you have to compromise on both sides. on the democratic side and the republican side. that will be part of the picture as well and proud of it reform. connell: to end this conversation, tell me what the final deal looks like. >> there are a number of plants that have been produced. they all have that combination of revenues and entitlement

reform. it will look something like those. not those particular details. i think and i hope that tax reform will be part of the package, not just an increase in the rates or an increase in taxes, but tax reform along with very serious and deep entitlement reform that will produce savings over the long-term and those entitlement programs that are really at the root of the problem. connell: that sounds, and, you know, you are pushing something similar to what has already been constructed and rejected at this point. former congressman, jim mccreary, thank you, sir. dagen: the man who over saw microsoft flagship windows leaving the company after the latest version of windows that he oversaw. connell: adam shapiro is with us for more on this story. >> i want to draw your

attention. writing an article about this. there were hints that this baby coming. he has become one of the polarizing figures that microsoft executives. a picture of him as an incredibly smart and passionate man. he could create a toxic work environment. now he is gone. he put up obstaales trying to integrate microsoft eight. xbox and windows. this is a man who has saved microsoft in the past. they brought him in. he was head of windows. it was after the disaster of windows vista. he was not playing nice in the sandbox. here is a quote we got from steve ballmer "it is imperative

that we continue to drive a lineman across all microsoft aims and have more integrated and rapid development cycles for our offspring." investors do not like the departure, but will the microsoft company be able to recover. back to you. connell: that is very good, adam. i guess we will cross them off as our future ceos of microsoft. dagen: new york residents are fed up with the utility companies quick response. they are taking action themselves. connell: another day, another title for apple. that tech giant is even meeting tiffany in the ranks. dagen: timothy burns -- ken burns will be here.

and how the history of sex this year's election people worried about the -- not even close. ♪ i'm a conservative investor. i invest in what i know. i turned 65 last week. i'm getting married. planning a life.

there are risks, sur but, there's no reward without it. i want to be prepared for the long haul. i see a world bursting with opportunities. india, china, brazil, ishares, small-caps, large-caps, ishares. industrials. low cost. every dollar counts. ishares. income. dividends. bonds. like bonds. ishares. commodities. diversification. choices. my own ideas. ishares. i want to use the same stuff the big guys use. ishares. 9 out of 10 large, professional investors choose ishares for their etfs. introducing the ishares core, etfs for the heart of your portfolio. taefficient and low cost building blocks to help you keep more of what you earn. call your advisor. visit ishares.com. ishares. yeah, ishares. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. >> i have your fox business

brief. wall street is trying to shrug off a sluggish start to the trading day. the dow up about 55 points. -- to settle a number of lawsuits related to the bernie madoff game. $40 billion of fees over a ten-year period. it looks like u.s. homeowners are getting better at keeping up with their mortgage payments. according to trans union a percentage at least two months behind on their payments fell to 5.5%. that is down nearly 5.9% or from 5.9% from a year ago. that is the latest from the fox business network. giving you the power to prosper. ♪

connell: some more headlines for

you right now on market now. gas rationing is over for the state of new jersey. it is over. it continues in new york city and on long island. that is at least for the time being. long island power authority and its partner national grid are facing a class-action lawsuit. thousands of residents are still without power there. to nassau county customers, the first plaintiff's to jjin the lawsuit. they are siding fraud, gross negligence -- couple more than doubled the number two on this list which is tiffany. michael cores, and lulu lemon

were in the top five. how about this, more women have drivers license in the united states than men. the women are also safer drivers. males with drivers licenses dropping almost 11% versus 5%. this is from a study at the university of michigan. they also found women more likely to purchase paper more fuel efficient vehicles than men. women are safer drivers than men. dagen: of the guys on the set that are shaking their heads at me are going to get a booth on the backside. i am bad. you read that. better, safer. connell: sandra smith is a wonderful driver.

dagen: better then all you, guys. [ laughter ] sandra: thank you, dagen. thank you, thank you. the markets are up right now. some sound evidence they things may not look so bad. home depot coming out with great earnings today. they beat profit forecast. the stock has gone up more than 50%. it started around $40 a share. guess what, it has been rising as we get more evidence that the housing market is recovering. look at how much home depot, a dow component, is outperforming its biggest competitor. analysts think that trend will continue with home depot. also, connell and dagen, i want to finish with tjx, they did

finish up with better profits. they forecasted to a zero to two forecast. that does not sound so great. connell: well-done, sandra. dagen: it is a quarter till the hour. stocks now in every 15 minutes. nicole: we are taking a look at a lot of movers. let's go through these five names that we are looking at so closely. saks coming out with numbers. down over 1%. dick's sporting goods has good sales numbers and looking good. they have top-flight golf balls as well. jcpenney hitting a new multi- year low. microsoft, you have an executive stepping down after 23 years. not a good sign.

dagen, like you, i am an excellent driver. back to you. dagen: by the way, a one on this set has the worst driving record of a lifetime. and he is shaking his head at me? i have had one driving ticket. one. connell: we have ken burns coming up. we are also going to talk election history with them. dagen: that is coming up. we will ask him about baseball. we promise. here are some winners on the nasdaq. ♪

sometimes investing opportunities are hard to spot. you have to dig a little. fidelity's etf market tracker shows you the big picture on how different asset classes are performing, and it lets you go in for a closer look at areas within a class or sector that may be bucking a larger trend. i'm stephen hett of fidelity investments. the etf market tracker is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea.

connell: this should be good. we want to take a couple minutes today and look at how this appears election rates historically. dagen: "more americans get their history from ken burns than any other source." we asked ken burns to join us in studio to talk about the election and his latest film which debuts this weekend, sunday.

the first part on pbs. but everyone always says this election is the most important of our generation. they have been saying that since 1800. in some ways, that is true. you feel the privilege of having the choice to select your elected leaders. we elected the first african american president in 2008. i feel this one is more important than the last one. i feel as if we are backing away from this idealistic first stuff. when you hear bill kristol talking about the difference between the marginal tax rate and 39% meaning pre-bush tax cuts can't remember with reagan -- this election provided.

it will be incumbent upon the republican party to how they will address things and keep a broad audience. it is incumbent upon the incumbent to follow along with ideas dance. i feel really optimistic about this. connell: a couple things. elect, are you saying you would have told a story about compromise? >> it was a bitter one. it seemed to be about no compromise. i think people woke up the next morning with regret. what did we say, what did we do to drive a wedge so far in between? [talking over each other] >> it is happening already. you are hearing republican leaders who would not even touch the dream act saying they need to resurrect.

talking about raising revenues that are not just eliminating loopholes. connell: one more question, do you think barack obama would be a lesser historical figure if he were not reelected? >> no. i do not think so. because of theesignificance of the country that raises the underlying theme. all men are created equal. the guy who wrote that old 100 human beings as he wrote that sentence. this election was a way of not escaping it, we have never been post- racial a we never will be post- racial. it is now doubly so because it has been affirmed and what it represents in terms of the shifting demographics of the united states. dagen: we want to show you a quick clip of the dust bowl coming out this weekend. >> it belongs on the list of the top three, four, five

environmental catastrophes in world history. those catastrophes took place over hundreds and even thousands of years. we've created a world-class environmental disaster in a matter of 40 or 50 years. dagen: created on what been made. is it not. >> this is the headline. this is the worst man-made ecological disaster in american history. perhaps, the world so far. what we forget is we have this southern plains, this grassland, that has never turned over. all of a sudden we came in and turned over an area larger than the size of ohio. ohio seems to keep being imported and everything in america history. ohio, ohio, ohio. [ laughter ] with the dry spell came, it was left to blow.

ships were covered with dirt. in one day, not just a handful of storms, hundreds of storms. more dirt was moved in a 24 hour period in the ten years it took to excavate the panama canal. there were kids and teenagers at that time that are now in the late 80s or 90s. what they tell is not just a story of environmental degradation, it is a baroque perseverance. trying to keep their farms. a mile and a half height: 250 miles wide, a building mountain range that was killing not only their crop and kids, and their cattle. that is terrifying. connell: it appears this weekend. dagen: watch it. can, come back soon.

tax the rich. president obama beginning his meetings with a friendly office of labor leaders right now at the office. connell: markets now continue in moments. ♪ [ male announcer ] this is joe woods' first day of work. and his new boss told him twongs -- cook what you love, and save your money. joe doesn't know it yet, but he'll wk his way up from busseto waiter to chef before opening a restaurant specializing in fish and me from the great northwest. he'll start investing early, hll find some good people to help guide him, nd he' set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade.

you walk into a conventional mattress store, it's really not about you.

we have so much technology in our store to really show the customers what's going on with their bodies. you can see a little more pressure in the shoulders and in t hips. ... now you can feel wt happens as we raise your sleep number settingnd allow the bed to contour to your individual shape. oh, wow. that feels really good. at sleep number we've created collection of innovations dedicated to individualizing your comfort. the sleep number collection, designed around the innovative sleep number bed - aed with dualair technology that allows you to adjust to the exact comfort your body needs. each of your bodies. so whatever you feel like, sleep number's going to provide it for you. during the final days of our semi-annual sleep sale, save $500 on our classic serie special edition bed set plus special financing on selected beds but hurry sale ends sunday. you'll only find the innovative sleep number bed at one of our 400 stores, where queen mattresses start at just $699.

dennis: i am dennis kneale. check at cheryl: i am cheryl casone. you know the phrase tax the rich. labors on board. president obama beginning his push to increase taxes on the wealthy by meeting with a supportive audience, labor leaders at a white house. we have republican senator roger wicker. if there's any room for compromise before the country falls off the fiscal cliff. dennis: the doesn't do windows anymore. microsoft windows chief shown the door less than a month after

launching windows 8. does that mean the product is a failure? cheryl: the latest on hostess at a strike which is the company to shut three plants and bring management to keep twenties on the shelves. dennis: stocks every 15 minutes. nicole petallides on the floor of the stock exchange. stocks up, j.c. penney down. nicole: equities across the board looking pretty good. the dow was up 60 points, a gain of 1/2% much like the s&p 500, the tech had been nasdaq is lagging a little bit up 0.1%. the dollar virtually flat and commodity selling off. winning day on wall street, home depot and at&t and verizon helping the dow along the name that has come under pressure today class several years is j.c. penney. today we're watching j.c. penney because of a downgrade from fitch. they are talking about whether or not all the things that have been done so far, irreversible.

credit suisse coming out talking about the recovery for j.c. penney, will be difficult and sales don't stop slowing down at this piece the next six months that is not good news and then you have pershing saying much of the statement he has not been impressed with the numbers we have seen. lowest since 2009. cheryl: not much turnaround on that company. a full court press is on at the white house as president obama is meeting with union leaders to push his plan for increasing taxes on people and make $250,000 a year. rich edson is outside the white's with details. rich: merriman nehr biggest supporters for president obama and democrats at the white house, major labor union leaders, progress of union leaders. what are they saying? how about this from our previous statement from the president of the afl-cio saying no more bush tax cut for the riches 2 prison, no benefit cuts for social security, medicare and medicaid.

also meeting today, representatives from the center for budget and policy priorities, the group a couple months ago that also said if you don't get what you can get on taxes tax increase, still reluctance, you should allow the country to go over the fiscal cliff on taxes so you get a better deal in january and february. when you talk about entitlement reform, when you talk about taxes, house republicans are saying john boehner is saying we will do revenue from tax reform but must be accompanied by meaningful tax reform so two different messages. congress is back in session after a hiatus for the election season. mitch mcconnell meeting with the new republican senator in that body, democrats and republicans returning to capitol hill and on friday the big meeting, president obama, congressional leaders start talking fiscal cliff. cheryl: they need to get going. thank you, live at the white house. dennis: labor leaders love president obama but can he bring

business leaders in? we meet with ceos tomorrow and trying to get republicans to compromise. republican senator and minority whip roger wicker of mississippi joins us from the capital. president obama says his reelection means we will tax the rich. democrats, republicans say they are old and the house meaning we won't raise taxes on any one. are you two side going to blow this and what let happen? >> i hope not. there is room for compromise. but i don't think labor leaders are going to get everything they want today. it is an election celebration but the voters in their wisdom have given us divided government again. democratic president, democratic senate and republican house and republican speaker. there's going have to give and take and there's a solution out there. dennis: which is more important to republicans? avoiding the fiscal cliff or avoiding a tax increase on people who earn over $250,000 a

year? >> what is most important to us is not causing a recession at this precarious point in our nation's history. if we do what labor leaders were suggesting today at the white house, then i think we are going to go back into a double-dip recession. we are down below 8% unemployment right now. last thing we need to do is send it right back up. what i wish the president would do tomorrow instead of talking to ceos from big business is bring in small business leaders who take risks and have to go to the bank and borrow money and create jobs away we do it in america at the small business level, ought to be talking to them. dennis: what is the percentage chance we get an accord between democrats and republicans without going out of the cliff? what chance have you given? >> we have a 77% chance. dennis: i like that.

>> i think it is way more than 50/50. the election is over. we have a country to run, we have different viewpoints, but there is a solution out there and i hope the president will show some leadership on making his proposal. dennis: avoiding the fiscal cliff and spending cuts, there's a $600 billion tax hike and spending cuts coming exactly right away. are you trying to take different spending cuts or wipe out spending cuts? don't we need to cut spending? >> you are right. we need to take different spending cuts. we don't need to go back to those higher spending caps. frankly if you look at what the house of representatives did back in mid 2012, they found a different way to achieve the same budget savings and prevent these hard defense across-the-board cuts.

that is one place to look at a starting point for negotiations between the speaker and the president of the united states. dennis: in the obama era at government has been spending a one trillion dollars more than they raised through taxes and tax revenues and the bush tax cut on the rich are $80 billion, $80 on $1,000, why is the president so obsessed with it and why are republicans so obsessed with keeping it? >> the reason we object to raising tax rates is it will cost us jobs, pure and simple. we don't lie awake at night wondering about people that make half a million dollars a year, the result of the tax cuts which will mean fewer jobs, fewer jobs created, fewer risks taken business people don't have to create jobs. we wanted encourage them to do that and we don't need to throw the country back into an era of

high unemployment. it is jobs we are worried about. the effect of tax rates. dennis: appreciate your hopeful take on it. seems like one side or the other has to blink sooner or later. >> there will be partial blinking on both sides. dennis: cheryl: i like the town of bipartisanship. finally good news for new jersey. gas rationing began 11 days ago as ended. the license plate system put in place after superstorm sandy. ratcheting continuing in new york city and long island, still a long line of cars and a long island power story, for national grid facing a class-action lawsuit, thousands of presidents still without power more than two weeks after the hurricane. a lawsuit charges them with breach of contract and gross negligence and fraud and obviously there will be hearings. we are hearing from governor cuomo, utilities are monopolies.

great investments but monopolies. dennis: the inevitable class-action lawsuit came because we just suffered one of the worst storms in the one hundred years so let's just beat the heck out of private industry but there has been a failure by the utilities to get back up and running fast enough. cheryl: un by living in the northeast, we have seen -- [talking over each other] dennis: lawyers will get rich off of this before anyone else. new york erskine to use what up with gas lines and frustration. we are live at the cme watching those gas prices. cheryl: northeast presidents need a vacation by now. many ceos coming up. stock 115%. we are talking about the economy, the cliff and much more. dennis: as we do every day take a look at metals. [ male announcer ] at scottrade,

we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start. our teams have the information you want when you need it. it's anothereason more investors are saying... [ all ] i'm with scottrade.

at legaoom, we've created a better place to handle your legal needs. maybe you have question about incorporating a business you'd like to start. or questions about protecting your family with a will or living trust. and you'd like to find the right attorney to help guide you along, answer any questions and offer advice. with an "a" rating from the better business bureau legalzoom helps you get personalized and affordable legal protection.

in most states, a legal plan attorney is available with every personalized document to answer any questions. get started at legalzoom.com today. and now you're protected.

dennis: time to make money in the house of pain. charles payne, a communications stocks in your important portfolio. charles: qualcomm. i'm a fan of this company. i just love her when jacobsen and the story and his son is running the company. technology in general is tough but this is the way to play the wireless revolution without having to pick a winner because the business model is such that they provide r&d for all the

players and doing extraordinarily well. saying came out with numbers, it was a record year for them, record quarter, revenue net, everything. dennis: they do the cdma wireless standard verizon uses the the more publishes gsm, at&t uses. i have been waiting for them to get all those patents and income phasedown. they have held their own. charles: they have held own. [talking over each other] charles: the code division. it will do it. apps jacobs winning against big boys, finally broke the ice and they are growing doing tremendous. in the last 3 month the street has gone from looking for them to make $4.08 to $4.46 almost every 2 weeks. the estimate coin. this month alone that had an upgrade from deutsche bank, new target 74 from 70, new target 69 from 66, new target 77 from 72, and a buy on them. this stock breaks around 65, 68.

when it gets through '68 it is back. cheryl: it is 6266. has a nice little gain today as well. charles: it gets through 68 and takes off because now you are looking at maybe maybe ultimately getting back to that high from 1999. [talking over each other] cheryl: you might have it soon. i like that as well. charles payne, thank you. it is 15 past the hour, stocks every 15 minutes. a new licensing deal for us. stuart: nicole: this is all about food. cracker barrel country store actually signing a multi-year licensing agreement deal with smithfield foods, bringing cracker barrel branded foods to wide range of some of the outlets including grocery stores and merchandising and how are the two stocks ferrying? with the perez, the moves are

fractional. we should say of two cracker barrels aware winner this year of 25% and business suffering to a certain extent down 13% this year. let's look at broader market averages, dow jones industrials up 52 points and diaz and the gaining 1/2%. dennis: thank you. oil and gasoline futures are falling. phil flynn of price futures group and fox business contributor says we could see oil dropped to $70 a barrel. good news in my view. phil: a lot of traders are saying that but it is necessarily good news. if we go over the fiscal cliff, you better hang on tight if that happens but also because of concerns about europe. last time oil was in the 70s was last june in the high 70s, 72, 74, then mario draghi said we will do whatever it takes to save the euro and oil prices took off but the euro is still in jeopardy and concerned about

greece and whether they will be paying their stuff back has put pressure on that and traders say it could take a turn for the worse and the economy back in the 70s. dennis: phil flynn. cheryl: another casualty of the david -- general david petraeus affair. head of operations in afghanistan charge fees and 30,000 e-mails to the tampa woman who triggered the initial private. dennis: i'm impressed by that output. node end to the greek tragedy. liz claman at the conference in naples, florida where a former imf managing director. cheryl: take a look at the world currencies and how they are caring against the u.s. dollar. $1.27. the euro under pressure today.

>> 21 past the hour, your fox news minute. fbi investigators searching the charlotte, north carolina home of paul law brought well last night, feds were seen carrying boxes and taking photographs inside the home of general david petraeus's alleged former mistress. fox news reported broadwell leaked classified information she could have obtained from

david petraeus. the saudi arabian man found guilty of conspiring to home the dallas home of former president george w. bush sentenced to life last hour. a jury convicted the failed terrorist of attempting to use a weapon of mass destruction. the former texas tech student was arrested in texas in 2011. out $3.6 million, up platinum what formerly owned by eric clapton. the ultra rare was made in 1987. a perpetual calendar with moon phases, one of the world's ten most significant wristwatches. does your headlines. cheryl: a pair of shoes may be. thank you very much. in overseas news disappointment that euro zone leaders once again failed to agree on the terms of the latest round of aid

for a floundering greece. one of the world's top economists is in naples, fla. at the cme global leadership forum and liz claman snagged him to find out what is next for greece and fiscal cliff. liz: you and dennis were just showing the currency effect and you saw the euro was weaker today. some of that has to do with questions that for all around the euro zone particularly greece. we have a lot to talk about with the former imf managing director, for richie economist from jpmorgan. great to have you in a fox business exclusive. the big news first, we would get to the fiscal cliff in a minute. the news that greece today was able to raise enough money for the moment to avoid default yet again yet now there are disagreements here and there is between the head of the imf and john claude jumper, one of the bureau's own people when it comes to finance about how we

deal with greece. what is the answer? >> the greek authorities as you saw just adopted through the parliament the austerity program they agreed was the choice so it is hard to imagine in those circumstances when the greeks had done what they were being asked to do that they would be allowed to face a default. so they garnered enough short-term support. nonetheless, for the program to continue for greece to continue to be able to draw on the financial support of the so-called europe and the imf and there has to be an agreement over the program over adjusting the program from the troy and it is obvious from what we saw yesterday publicly that that agreement still has not been reached a. cheryl: our creditors going to have to take a haircut when it comes to the deficit of greece? >> private sector creditors had a write-down of their holdings of greece sovereign debt. one of the key questions for the

imf to move forward is required by their membership that they can show that at the end of the program the country is in a sustainable position including the debt sustainability and that is one of the issues currently swirling. will public sector holders, european public institutions have to write down their holdings? they don't want to even though they are willing to give the lower interest rates. cheryl: does greece have to be jettisoned from the euro zone? >> this is a decision ultimately that the europeans themselves, the euro zone members would have to reach. right now it seems clear that the greek government is responding to the demands for underlying structural reforms in a way that hasn't been the case last few years. it seems difficult that their partners would not cooperate at a time in which they are acting. cheryl: let's shift to the fiscal cliff.

do you believe the white house and congress will reach an agreement that will avoid the fiscal cliff? >> it seems most likely. it is clear that the u.s. economy will face real risks at a time -- cheryl: what kind of risks? how many job losses will get the credit rating notch cut down? >> hard to be overly specific about exact about such a thing but you can imagine we have heard the presentation just this morning that the fiscal cliff would entail an increase in fiscal drag in the economy equal to 5% gdp, figures can differ but it is obvious it would be a significant negative for the economy with an increase -- cheryl: recession? >> probably there's an unexpected increase in tax rates and tax burdens simultaneously, significant cutback in spending, destruction of medicare

repayment system, it is hard to imagine the administration would allow that to occur. cheryl: as we finish up do we have faith in this country? we started to see some decent economic data, housing and auto tails and retail sales look better. >> not just a matter of faith. if we analyze the situation, you can see for many reasons the near-term outlook for the u.s. economy is a favorable one and more favorable than the consensus assuming among other things there is a reasonable solution to near-term fiscal challenge and other factors but the medium term outlook for the u.s. economy is very bright indeed. cheryl: i want to end on that statement because we won't get much better than that. former managing director of the international monetary fund, a pleasure to have you here at the cme global financial leadership conference. thank you so much and speaking of global leadership coming up at 3:00 eastern he has watched

more billion dollar businesses than anyone on the planet. sir richard branson of the virgin group and kerri duffy, cme group executive, the hope for this event. did he come out swinging against the government he says is making it too difficult to run his business. all that and more starting at 3:00 eastern live from naples, fla.. cheryl: see you there. dennis: the disagreement over how to prevent the fall off of the fiscal cliff but we have some tips on how you might make a little money in the meantime. cheryl: here we go with the hostess times. hostess has cut twinkies to union strikers shedding two plants and bringing in management to keep production going. dennis: look at the s&p winners.

dennis: we have breaking news right now. the washington post with a change at the top. marty baron now moves to the rival washington post. brockway moved to the post after leaving the "wall street journal" and 2008. he will be a vice president looking into efforts of getting into the media. they bring in there and who has been with the boston globe for years. cheryl: while a market selloff would be the likely reason for falling off the fiscal cliff. joining us now is mark.

you are a big dividend supporter. major selloff in the market. how are you feeling now? >> i still think dividends are the way to go long-term. we could get a selloff. one thing to keep in mind, there is an argument out there that this increase in taxes on dividends would really sink dividend stocks because that would make them less attractive. if you go back years, there have been many studies that have shown higher taxes on dividends have higher returns on those stocks and even the s&p 500. there is no historical correlation between lower returns on dividends. cheryl: at the same time, what we are seeing now is constitutional as you and i

know. these have certain parameters they have to meet. the fear is they will have to sell out some of these dividend names. is this bad for shareholders? >> in the short term, it definitely is. for a long-term investor, it will create some great opportunities to get in with some great quality names. selloff is the best thing that can happen for you over the next month or so and in 2013, pick up some great talk. cheryl: these are names that you say have been overvalued and under load. omega health investors, it is a healthcare read. why healthcare? >> this is a very out-of-favor stocks. they are involved in nursing homes. nursing homes have been a difficult place over the last few years to operate because of the flashes to reimbursement by medicare. that will change in 2013.

the important thing to remember with omega is they do not operate the nursing homes themselves. they are the landlord. as long as the nursing homes keeps the doors open, they have to pay rent. it has raised the dividend substantially by about percent. it is a great way to play healthcare. they could have a good fourth quarter. they have a star wars license. that could be a nice little catalyst for the star wars franchise. cheryl: interesting. thank you very much. good to have you on the show. thank you, mark. dennis: posted france hitting back at the striking union.

hostess ceo told me yesterday he will shut down the company yesterday at the baker's union does not stop striking. >> if they decide in a very short order, and i'm talking days, not weeks, to come back to work we have a platform we can survive. dennis: no need yet to forward twinkies. hostess continues to bake them. cheryl: going to grandma's. thanksgiving? why you may want to leave a little early. dennis: i am leaving on wednesday. ceos in washington worried about the fiscal cliff ahead of today's meeting with the washington. cheryl: europe may be a problem, but we have less of them. ♪

>> i am tracy byrnes with your fox business brief. small business owners were a bit more of the last month. the survey, which was completed a whole week before the presidential election, also shows owners grew more uncertain about how businesses will be six

months from now. dow chemicals is on the rise after getting a ratings boost from goldman sachs. they believe it is earnings for shared growth over the next few years. aaa says more than 39 again americans will be driving to their thanksgiving destination this year. that is up from last year and the most since 2007. that is the latest from the fox business network. giving you the power to prosper. ♪

dennis: president obama meeting right now with this stalwart union laborers. it could be a chillier gathering tomorrow when he meets with business leaders. peter barnes give us a preview. peter: that is right, dennis.

about 80 ceos are here. they are very worried about the fiscal cliff. he is warning today that companies have created backup plans that include layoffs if the fiscal cliff happens. a panel of economists speaking here this morning sounded rather pessimistic about the country falling off the fiscal cliff. take a listen. >> i am somewhat pessimistic that they will be able to sort out that bargain in the next two months. i am afraid, i think a pretty serious danger. >> i think it will be difficult to get the fiscal cliff resolved in a major way and a permanent sense in the next couple months. >> i think the president will be very tempted to say, let the tax cuts expire. peter: tortellini is one of the ceos that will be at the white

house tomorrow. he said that the president "needs to improve his relationship with the business community to get the economy going again." we are starting with rob portman, republican member of the budget committee. finally, this afternoon treasury secretary timothy geithner will weigh in. dennis: thank you very much. peter barnes. ceos are there for the first time this week. cheryl: it is time for your west coast minute. california home values are rising. the ability for affordable homes is plunging. 39% of homebuyers could afford a median priced in the fourth quarter. a water main break of south san

francisco cause a mudslide this morning. the area is heavily flooded. crews are working out to repair the break. an arizona woman was angry with her husband for not voting on election day so she ran him over with her car. the 28-year-old chase and pinned her husband with her suv against the curb. she said obamacare would cause her family hardship and when she found her husband did not bother to vote, she lost control. he is in the hospital. dennis: sandra smith has today's trade. sandra: there will be a showdown when it comes to these retailers. we already saw a negative tone by the retailers last week. walmart and target post reporting on thursday. these are the discount retailers that thrive even in difficult times.

they are both in the battle of swing there there often as early as possible on thanksgiving day. stocks up about 22.5%. it is outperforming the broader market. something to certainly continue watching. they are expected to report a 10% profit. opening their doors at 10:00 p.m. this is how competitive things are getting right now. this shows that cautious buyers are out there and they are looking for the big bargains. target is expected to post sales that are expected to be overall sales for the entire quarter. this stock up by just as much, about 22%. it is off today by 1%. analysts that cover target are urging investors to buy target shares ahead of the holidays. profits are expected to be down. they are opening their doors at

9:00 p.m. an hour after walmart. there you have it. by the way, dennis and cheryl, hurricane sandy will really be heated here. we will have to watch how it affects sales. cheryl: charlie just signed a deal with neiman marcus. they are putting a lot of money into advertising. sandra: this will be one of the most competitive shopping season ever. they will do just about anything to get you into the door. cheryl: quarter tale. stocks now and every 15 minutes. nicole: take a look at home depot. it hit a new annual high today. the highest level since 1999-2000. remember the turn of the millennium. these levels were where home depot was at that time. we are finally seeing it get back to those levels.

they came out with numbers and rose their full year outlook. that coupled with going forward .they may see a small sales gain from hurricane sandy. these are their words, not mine. home depot is a winner. it is leading both the s&p 500 and the dow jones industrial. back to you. dennis: thank you very much, medical. one of the richest franchises and network television. jim bell is leaving to run nbc. today had an unbroken run at number 1852 weeks straight. sixteen years. until last april when good morning america toppled it.

today, ten weeks straight in second place. cheryl: it is very interesting the management shakeup in the changes coming. "good morning america" -- dennis: do not blame the makers. cheryl: northeast residents probably need a little bit of a break. we will talk with him about what is ahead. let's take a look at some of the winners on the nasdaq. ♪

cheryl: celebrating the one-year anniversary of the public company by ringing the open bell. passing a stock surge of 115%. joining me now is the ceo. stocks really performing. 150% gain is great for a spinoff. there is a concern that we are getting into the fiscal cliff fall. >> there is a fairly tight correlation. obviously, we are concerned

about some sort of a long-term resolution to the issues that are in front of us. people will be able to turn their attention to doing something a little more permanent. cheryl: one of the big discussions, obviously, what happens to those taking $250,000 or above. >> our demographic is an average household income of north of 150. cheryl: you also, you know, with the company got even before the spinoff, given a lot of investment during the recession. you got risk carlton as well as marriott residence. are you concerned that that traveler may pullback? >> the luxury second-home market which is really where the ritz carlton market is has not rebounded.

cheryl: in north america, contract sales just jumped. that actually surprise me. you are seeing growth in north america. >> yes. in our timeshare products. versus the ritz carlton. that is generally where we are seeing the both of our growth. cheryl: you are also expanding in asia. >> yes. all statistics about the growth of the wealth in that part of the world, they all point in the right direction. now it is the matter of getting enough places and opening a sales office. cheryl: you think at this point, over the next four years, frankly, has healthcare loans affected your company at all. can you grow and expand your employees face because of

obamacare? >> obamacare will certainly have some impact. we have to make sure we are meeting the needs of our owners. our owners still want to see us grow. they want us to have more destinations and more travel options. we will grow our workforce proportion to that. cheryl: talking about the demographics of who your customer is in assuming it is an older demographic. >> average eight north of 50 years of age. professional white-collar couple of kids. college educated. cheryl: overall, just a general question about the marriott. do you feel that marriott itself is positioned for this next year? >> one of the strength that the company has is the diversity of its lodging for polio.

sometimes when times get tough, people trade down. we have product to fit that and vice versa. i think it is very well-positioned for the long-term. cheryl: a heck of a year for you. especially for the stocks. stephen, thank you. >> take care. dennis: -- leaving microsoft though he was seen as a contender to succeed microsoft ceo. the exit was a mutual decision. sources say it comes from growing tension. spinoff said not to be a team player. he just orchestrated this product. cheryl: this is a question not

an answer. you have the two people running the biggest operating systems, microsoft and apple gone. i am wondering if maybe the business is going somewhere different that we do not know about. this is a good as the archer, is it another missed opportunity for microsoft? dennis: melissa and lori are up next.t, ♪ ove, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade. [ngine revs ]

♪ ♪ [ male announcer ] the mercedes-benz winter event is back, with the perfect vehicle that's just right for you, no matter which list you're on. [ santa ] ho, ho, ho, ho! [ male announcer ] lease a 2013 c250 for $349 a month at your local mercedes-benz dealer. at your local ♪♪ you can help othersnk along the way. ♪ ♪ a portion of every bottle that they sell goes to fight ♪ ♪ breast cancer and i think that's swell. ♪ ♪ the more you take, the more they'll pay, ♪ ♪ so make them write a big check today. ♪ ♪ and if you're feeling a little slow, ♪ ♪ then 5-hour energy will help you go. ♪ ♪ so buy a bottle of pink lemonade and ♪ ♪ you can help fight breast cancer today. ♪ if you're a man with low testosterone, you should know that axiron is here.

the only underarm treatment for low t. that's right, the oneyou . axiron is not for use in women or anyone younger than 18. axiron can transfer to others through direct contact. and children should avoid contact where axiron is applied as unexpected signs of puberty in children or chang in body hair or increased acnen women may occur. report these signs and symptoms to your doctor if they occur. tell your doctor about all medical conditions and medications. do not use if you have prostate or breast cancer. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet, or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effectinclude skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. see your doctor, and for a 30-day free trial, go to axiron.com

>> 77%. that is the chance republican senator told us he sees them of hurting the fiscal cliff. let us pray for that. cheryl: one interesting thing that came up is there's no voice for small business in washington right